Jeremy Hunt denies lying about ‘record tax cuts’ claim

Jeremy Hunt has denied being “ fundamentally dishonest ” by claiming his new tax cuts are “the biggest in history”.

The chancellor came under fire after independent experts said overall taxes are still going up despite the announcement of a two per cent cut in national insurance in Wednesday’s autumn statement .

The Conservative Party sparked fresh controversy by publishing an official advert this morning stating that the tax cuts, including a business tax reduction, are “the biggest ever”.

Mr Hunt clashed with Nick Robinson , host of BBC Radio 4’s Today programme, after the broadcaster told him the claim was fundamentally dishonest and “downright misleading.”

Mr Hunt said he strongly disagreed and defended his package.

Mr Hunt went on to admit that "of course" taxes were going up "so we can pay down our Covid debt".

The Tory advert claimed it was the "biggest tax cut in British history"

Mr Hunt added: "But yesterday I did make a start in bringing down the tax burden. I’ve never said that we were going to get there all in one go."

On LBC, Mr Hunt admitted that Wednesday’s tax cuts were just “a step towards bringing down taxes on families who've seen their taxes go up”.

But shadow chancellor Rachel Reeves said the announced tax cuts do not compensate for frozen tax thresholds pulling more people into paying tax.

She suggested a Labour government would not immediately increase income tax thresholds, with a focus on growing the overall economy first.

But Ms Reeves told Times Radio: "In fact, the autumn statement confirmed yesterday that the tax burden on families despite this cut in national insurance is going to continue to rise in each of the next five years.

"So, it is some relief, but, to be honest, it doesn’t compensate for the fiscal drag."

In an analysis published overnight, the Resolution Foundation savaged Mr Hunt’s autumn statement as a bung to the rich.

The think tank said 40 per cent of the gain from tax and benefit measures announced on Wednesday will go to the richest fifth of the population.

And it found that, despite Mr Hunt boasting about delivering “the biggest package of tac cuts since the 1980s”, households will still get £1,900 poorer over the course of the current parliament.

Chief executive Torsten Bell said Mr Hunt’s “tax-cutting rhetoric” had “clashed with a tax rising reality”.

Mr Bell said: “That might be difficult for policy makers, but it’s a disaster for households whose wages are stuck in a totally unprecedented 20 year stagnation. This parliament is set to achieve a truly grim new record: the first in which household incomes will be lower at its end than its beginning.”